Correlation Between Digital Realty and Mack Cali
Can any of the company-specific risk be diversified away by investing in both Digital Realty and Mack Cali at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Digital Realty and Mack Cali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Realty Trust and Mack Cali Realty, you can compare the effects of market volatilities on Digital Realty and Mack Cali and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Digital Realty with a short position of Mack Cali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Realty and Mack Cali.
Diversification Opportunities for Digital Realty and Mack Cali
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digital and Mack is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Digital Realty Trust and Mack Cali Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mack Cali Realty and Digital Realty is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Digital Realty Trust are associated (or correlated) with Mack Cali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mack Cali Realty has no effect on the direction of Digital Realty i.e., Digital Realty and Mack Cali go up and down completely randomly.
Pair Corralation between Digital Realty and Mack Cali
If you would invest (100.00) in Mack Cali Realty on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Mack Cali Realty or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Digital Realty Trust vs. Mack Cali Realty
Performance |
| Timeline |
| Digital Realty Trust |
| Mack Cali Realty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Digital Realty and Mack Cali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Realty and Mack Cali
The main advantage of trading using opposite Digital Realty and Mack Cali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Realty position performs unexpectedly, Mack Cali can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mack Cali will offset losses from the drop in Mack Cali's long position.| Digital Realty vs. American Tower Corp | Digital Realty vs. Crown Castle | Digital Realty vs. Iron Mountain Incorporated | Digital Realty vs. SBA Communications Corp |
| Mack Cali vs. JBG SMITH Properties | Mack Cali vs. NL Industries | Mack Cali vs. MI Homes | Mack Cali vs. Flexible Solutions International |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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